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INSTITUTIONAL STRUCTURE AND CAPACITY FOR O&M

CHAPTER 3 PROJECT OUTLINES

3.6 OPERATION AND MAINTENANCE STRUCTURES

3.6.2 INSTITUTIONAL STRUCTURE AND CAPACITY FOR O&M

• The right to operate a toll road granted by GOI is to be carried out in an open and transparent manner; and

• GOI will execute land acquisition for the toll roads, although the investors have to provide the land acquisition fund. However, there is a possibility for GOI to provide land acquisition cost.

The Minimal Service Standard for Toll Road 392 published in 2005 stipulated the service level of toll road operation and maintenance as shown in Table 3.6.1. The O&M company needs to implement the services in accordance with a “minimum service standard” and the toll road enterprise also needs to entitle government acknowledgement for the enterprise fulfilling the “minimum service standard”.

(3) Toll Road Regulatory Board

In accordance with Road Law No. 38/2004, a toll road authority (BPJT) was established as the toll road regulatory body in Indonesia on 29 June, 2005. The tasks and functions of BPJT are the following:

• To recommend the initial tariff and tariff adjustment of toll to the Minister of Public Works

• To take over toll road development rights following the expiry of the concession period, and to recommend further operation thereof to the Minister of Public Works

• To temporarily take over toll road development rights that have failed starting with the concession, for re-tendering of the development

• To make preparations for the toll road development rights, which include analysis of financial viability, feasibility study, and preparation of environment impact assessment

• To seek investment in toll roads through transparent and open tenders

• To assist in the land acquisition process if there is a guarantee of availability of fund from the enterprise and to prepare the mechanism of the use thereof

• To monitor the activities of planning and execution of construction works as well as the operation and maintenance of toll roads by the enterprise

• To supervise the enterprise of the fulfillment of all the obligations under the toll road development agreements and to report the results thereof periodically to the Minister of Public Works.

Table 3.6.1 Minimal Service Standard for Toll Road 392

The BPJT is responsible for toll road investment procedures, including the procurement of investors.

A diagram of the bidding process procedure is shown in Figure 3.6.3.

Figure 3.6.3 Bidding Process by BPJT

(4) Institutional Issues on O&M 1) Investment Scale of O&M

Sound financial management is not expected in the Phase 1 period because the 9.5-km operational section length is too short to provide adequate profit against initial investment for O&M.

As a result of the financial analysis mentioned in Chapter 3.4.3, Phase 2 construction is recommended to be implemented by the GOI. However, tariff setting and adjustment is anticipated as a serious risk. Therefore, periodic tariff adjustment based on the CPI should be made. Setting of the initial tariff and subsequent tariff adjustment need to be executed properly.

2) Efficiency of O&M

Since BIUT Road connects the inter-city toll road of Padalarang – Cileunyi, O&M facilities needs to be coordinated efficiently to ensure the comfort of road users.

(5) Recommendation for O&M Company Procurement

Procurement of an O&M company shall be considered based on the financial soundness of the enterprise and its capacity and experience in providing appropriate O&M services. It is especially important that O&M of the BIUT Road be coordinated with the Padalarang – Cileunyi Toll Road, which will be connected with BIUT Road. Installation of compatible operational systems between

Private Sector Government/BPJT Timeframe

Advertisement/Invitation to Prequalification (PQ) & Bid

Project Preparation

Prequalification of Bidders

Pre-Bid Conference/Bid Preparation

Receipt and Opening of Bid Evaluation of Bids

Decision Appointment of Successful Bidder

Contract Signing Contract Implementation Project PQ Document

Submit PQ Document Prepare Bid Document Prepare Bid Proposal & Bid

Bond

Receive Notice of Award Performance Bond

Prepare - Special Purpose Vehicle - Financial Closing

Sign Contract Project Implementation

(6-8 months)

(4-6 months)

Padalarang – Cileunyi Toll Road and BIUT Road is recommended, such that it will contribute to the financial viability of the O&M company and demonstrate sound toll road operation.

(6) Operation and Maintenance (O&M) Plan 1) General

O&M of a toll road is divided roughly into the following nine aspects:

• Asset Management

• Traffic Control & Surveillance

• Information Management

• Emergency Management

• Patrols

• Heavy Loaded Vehicle Regulation

• Breakdown Service

• Equipment Operation

• Toll Collection

The O&M plan for the BIUT Road shall take into consideration the toll road laws and regulations of Indonesia.

2) Toll Road Maintenance

The toll road maintenance function is divided into routine maintenance, periodic maintenance such as repair, rehabilitation and disaster prevention, equipment and building maintenance, and emergency maintenance. Toll road maintenance includes the following tasks and the operator should establish an appropriate unit to cover all of the typical works of routine maintenance as summarized in Table 3.6.2 to Table 3.6.6.

h. Routine Maintenance

Table 3.6.2 Routine Maintenance Work

Type Work Items

Inspection Routine Inspection Periodic Inspection Special Inspection

Cleaning Cleaning of Roadway Surface Cleaning of Associated Facilities Cleaning of Road Accessories Vegetation Tree/Forest Control

Lawn Control Slope Vegetation Traffic Accident Recovery Works Routine

Traffic Regulation

i. Periodic Maintenance

Table 3.6.3 Periodic Maintenance Work (Repair Work)

Type Work Items

Pavement

Renovation Patching Crack Seal

Spot Replacement of the Pavement Correction of Rugged Road Surface Surface Treatment

Repainting of Road Markings Repair

Repair of Bridges

and Structures Repair of Expansion Joints Repainting of Steel Structures Partial Repair of the Bridge Deck Repair of the Guard Wall Re-galvanization of Guardrails

Table 3.6.4 Periodic Maintenance Work (Rehabilitation and Disaster Prevention)

Type Work Items

Pavement

Rehabilitation Pavement Survey

Asphalt Pavement Overlay

Asphalt Pavement Mill and Overlay

Asphalt Surface Regeneration

Pavement Resurfacing

Concrete Pavement Overlay Reinforcement and

Improvement of Bridges and

Structures

Recovery of Fatigue Failures

Cross-sectional Reinforcement of Main Girders

Continuation of Consecutive Simple Girders

Installation of Extra Main Girders

Pre-stressing by Post-installed Outer Cables

Partial Replacement of Floor Slabs

Deck Top Thickening

Deck Bottom Thickening

Deck Waterproofing

Renovation of Shoes

Improvement of Drainage Restoration of Embankment Settlement

Slope Protection Rehabilitation and

Disaster Prevention

Rehabilitation of

Traffic Safety and Guard Fences

Control Facilities Delineators

Traffic Signs

Environmental Improvements

j. Equipment and Building Maintenance

Table 3.6.5 Equipment and Building Maintenance Work

Type Work Items

Inspection and Testing of Equipment Maintenance of Equipment

Maintenance of Buildings Equipment and

Building Maintenance

Vehicle Management

k. Emergency Maintenance

Table 3.6.6 Emergency Maintenance Work

Type Work Items

Removal of debris or obstacles from natural causes Emergency

Repair of damage caused by traffic accidents

3) Institutional Structure of O&M

Considering the above requirements, the O&M company shall provide a 1) traffic control center (TCC), 2) emergency response (ER) team, and 3) general office. For reference, Figure 3.6.4 shows a typical O&M structure in Japan for an expressway operator. Several out-sourcing contracts are commonly accepted in Japan for O&M works.

Figure 3.6.4 Sample Organization of an Expressway Operator in Japan

3.6.3 INSTITUTIONAL STRUCTURE AND CAPACITY FOR ENVIRONMENTAL